October 25, 2016

Paris Relocation: Rental Market Update

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Oct

25

Paris Relocation: Rental Market Update

Posted by: Isabelle Grimbert, Director, International Assignment Services, France

Cartus’ latest Paris Market Watch looks at the city’s current rental market, including the types of properties available and the neighbourhoods that are popular with international assignees. We also discuss the ALUR (Accès au Logement et un Urbanisme Rénové) Law and the impact it has had on the local rental market during the first year of implementation.

The Impact of the ALUR Law on Relocation

In August of last year, as part of the ALUR Law, rent controls were introduced across Paris. The controls impact tenants using a personal lease, but do not apply to those using a corporate lease. Rental controls limit rates to 20% above and 30% below a neighbourhood’s average, and form part of the French government’s nationwide housing reforms. One year on and the Paris rental market has become more accessible to tenants, although some estate agents and landlords are now giving preference to individuals using a corporate lease.

The rent controls have also begun to discourage buy-to-let investors, with some selling their rental properties because they no longer deem them to be a good investment. As a result, there has been a dip in the number of rental properties available in Paris, which is making it a little challenging for international assignees. As the market is quite tight at the moment, when an assignee does find a property they like, they’ll need to act quickly to secure it.

Despite these trends, the rent controls have been popular amongst tenants, as it ensures more affordable housing. In July 2016, the government announced that the law is working well and plan to introduce rent controls to other parts of the country in 2018, although no exact timescale has been given.

Read our Paris Market Watch for a more detailed review of the city’s current rental trends and view our Resource Page for additional information on moving to other locations in the EMEA region.

Category Real Estate
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Posted By

Isabelle Grimbert

About Isabelle

Isabelle, who has worked in the relocation for 17 years, is in charge of the Cartus office in France as Operations Director. She has lived in Hong Kong, Australia, New York, and Puerto Rico.

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